Connecticut Bankruptcy Law Blog

If you have filed for Chapter 13 bankruptcy in Connecticut and went through the process of setting up your plan, then you are now ready to put the plan to use. What you do after you file is very important. It will greatly affect your finances and your business if you do not follow the plan. The US Courts notes there are a few things that you need to keep in mind as you continue forward in the bankruptcy process.

The most important thing you have to do is make your payments on time. This should be very easy to do because payments should come directly through payroll deductions. If you miss a payment, you could face serious issues with your case and face liquidation of your assets.

At the Law Offices of Charles A. Maglieri in Connecticut, we see an ever growing number of senior citizens coming to us for help in filing bankruptcy. As the New York Times recently reported, if you are 65 or older, your inadequate pension and personal savings, plus the rising costs of medical care and prescription drugs, may have put you in the position where bankruptcy is your only realistic option. A recent study shows that seniors such as you represent 12.2 percent of all bankruptcy filers today. In 1991, seniors represented only 2.1 percent of filers.

Unfortunately, the dream of one’s senior years also becoming the golden years no longer applies to the majority of Americans. Many factors, including the following, have made it impossible for today’s seniors such as you to retire in comfort:

• Extensive debt
• Little or no savings
• Medicare coverage gaps
• Skyrocketing medical costs
• Longer waits for Social Security benefits

One of the first things you might want to do after a bankruptcy discharge is to repair your credit. As you know, getting approved for a loan is one of the most effective ways to do this. You and other Connecticut residents may find it encouraging to learn that you may have many borrowing options after a bankruptcy. However, you should also learn how to recognize a valid lender from one that is considered predatory.

As NerdWallet explains, predatory lenders often target people fresh out of a bankruptcy or with few financial options, because they are more vulnerable and often eager to get a fresh start and repair their credit. Unscrupulous lending practices can quickly backfire on you and leave you with additional insurmountable debt and ruin your credit again.

You have experienced financial difficulties for several months, but you tried unsuccessfully to get your head above water and conquer your insurmountable debt. You realize that the time has come to consider filing for bankruptcy. A bankruptcy discharge could solve many of your problems, you realize, but you also worry that you might not qualify for Chapter 7 because you have a steady income and may not pass the means test. You and other Connecticut residents may benefit by learning how a Chapter 11 bankruptcy could be the better option.

As you may know, Chapter 11 restructures your debt and allows you to make manageable payments over a period of three to five years, unlike Chapter 7, which discharges your eligible debt. However, those who qualify for Chapter 7 may lose their homes, extra vehicles and other assets to repay creditors before receiving their discharge. FindLaw explains that if you want to keep your home and vehicles, and you have a steady job, Chapter 11 could be your route to debt relief.